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Page Title: Variable Housing Allowance
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The purpose of BAQ is to provide a member with a pay supplement when it is necessary for the member and any eligible dependents to obtain private quarters because the government is unable to furnish the member with  family  quarters  at  the  member’s  duty  station. Members without dependents, in paygrades E-7 and above, may elect at anytime not to occupy assigned government quarters at the permanent duty station (PDS) and become entitled to BAQ. However, if it is determined  that  this  option  will  adversely  affect  a training  mission,  military  discipline,  or  readiness,  the members may not exercise and be allowed to choose this  option. Refer to part 3, chapter 2 of the DODFMR, volume 7, part A, for additional information concerning BAQ. Variable Housing Allowance VHA is intended for the purpose of assisting service members entitled to BAQ an opportunity to defray housing costs if government quarters are not assigned. When  transferring  to  a  new  PDS,  the  service member has no entitlement to VHA for the number of travel  days  authorized  or  actually  used,  whichever  is less,  between  the  PDSs.  The  computation  of  travel  time is  for  the  number  of  days  allowed  for  direct  travel between PDSs without consideration of any temporary duty en route. When both husband and wife are service members, each  is  entitled  to  VHA  (ineligible  to  receive  BAQ)  as prescribed in the  Joint  Federal  Travel  Regulations (JFTR),  NAVSO  P-6034,  volume  1. A service member who lives with parents or other family members and pays no rent is still entitled to have the  utility  allowance  considered  in  the  VHA  offset computation. Refer to the JFI’R, volume 1, chapter 8, and the MILPERSMAN,  Article  2640500,  for  additional information  concerning  VHA. Overseas Cost-of-Living Allowance The overseas cost-of-living allowance (COLA) is prescribed   to   help   service   members   assigned   to overseas duty stations to maintain the purchasing power of their basic military compensation in the overseas area. COLA is based on comparison of costs between an overseas  area  and  the  continental  United  States (CONUS). In fact, the COLA computation compares the  cost  of  over  100  different  goods  and  services between CONUS and the overseas area. Cost  changes  at  the  overseas  location  do  not necessarily cause COLA changes. The overseas change must  be  compared  to  the  CONUS  change.  For  example, if  an  overseas  cost  increase  is  greater  than  a corresponding CONUS increase for the same time, a COLA  increase  could  occur  depending  on  how  large  the difference is. If the overseas item cost increase is the same as the CONUS item increase, no COLA change should  occur.  If  an  overseas  item  cost  increase  is  less than  a  corresponding  CONUS  item  increase,  a  COLA decrease  could  occur  despite  the  increase  in  item  cost at the overseas site. Refer to the JFTR, volume 1, chapter 9, part B, and the MILPERSMAN, Article 2640310, for additional information  concerning  overseas  COLA. Overseas  Housing  Allowance The OHA system provides an allowance to service members  assigned  to  overseas  locations.  The  OHA helps  defray  a  significant  amount  of  housing  costs associated  with  overseas  duty  locations.  The  OHA provides an allowance based on the difference between BAQ or family separation allowance (FSA), type I, and total  housing  costs. This  cost  cannot  exceed  the maximum   amount   set   for   an   individual   service member’s paygrade according to appendix K of the JITR, volume 1. Refer to the JFTR, volume 1, chapter 9, part B, and appendix K, and the MILPERSMAN, Article 2640320, for  additional  information  concerning  OHA. Continental  United  States  Temporary  Lodging Expense Temporary  lodging  expense  (TLE)  is  paid  in CONUS.  The  guidelines  for  TLEs  are  set  forth  in  the JFTR, volume 1, chapter 5, part H. TLE is intended to help a member partially offset the cost of occupying temporary lodging incident to a PCS move. The JFTR, volume  1,  defines  the  types  of  temporary  lodging facilities and private or commercial lodgings in the vicinity of either the old PDS or the new PDS within CONUS  a  service  member  or  dependents  may  occupy to be eligible for TLE. Refer to the JFTR, volume 1, chapter 5, part H, and the MILPERSMAN, Article 2640400, for additional information  concerning  TLE. 8-7

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